December 23, 2011
Back in September, we did an analysis of Starbucks Corp (NASDAQ: SBUX) titled “Starbucks Breaks to new Highs.”
Almost immediately the stock pulled back from over $40 a share, correcting to below $36 a share in a couple of weeks. But since the lows of that correction, Starbucks has moved consistently higher, closing around $45 a share on Thursday, December 22.
Starbucks is the leading fresh coffee and specialty coffee brewer plus sells high quality whole coffee beans and coffee related equipment.
Starbucks has reached levels where some profit-taking is likely, but if you can pick up shares around $44 a share or lower in any pullback, the stock should test $50 a share in coming months.
Support is at $40 a share and if Starbucks closes below this level the trade should be avoided or stopped out.
The Fibtimer.com (http://www.fibtimer.com) Stock Timing Strategy does not hold a position in Starbucks.